Stephen Avenue businesses threaten legal action over construction plans, cite potential for 'irreparable' harm

A group of Stephen Avenue businesses is threatening legal action against the City of Calgary over construction that is set to begin between First Street S.E. and Centre Street S.E. immediately following the Calgary Stampede.

Business leaders belonging to a coalition of 25 businesses on or near Stephen Avenue are demanding the city pause its redevelopment plans for a couple of weeks after a planned July 14 start date, citing concerns for "irreparable" damage it will do to their operations.

"This is our peak tourist season and we need to capitalize on it," said Suzanne Baden, managing general partner of the Klein/Harris restaurant and one of the business leaders speaking out against the redevelopment plan. 

"We want to work with the city, but this has been something that's gone from a pie-in-the-sky notion to shovels in the ground in a matter of months for us."

The group is also demanding more clarity and accountability from the city around timelines, safety concerns, funding beyond Phase 1 and where some materials are being sourced from in the redesign.

Stephen Deere, CEO of Modern Steak on the intersection of Eighth Avenue S.E. and Centre Street S.E., said the group has a simple request for the city: "Engage with the business community and consult so we can all get on the same page."

As part of the city's Stephen Avenue revitalization project, this phase of the redevelopment will include replacing aging underground utilities like water pipes, stormwater systems and electrical lines, installing soil cells to support tree growth, and renewing worn-out street surfaces.

In an emailed statement to CBC News, the City of Calgary said construction will move forward as planned. The redevelopment "is part of a broader vision and effort to replace the aging utility infrastructure that lies beneath Stephen Avenue.

"The revitalization project also helps us deliver on Calgarians' priorities for a thriving, inclusive and resilient downtown," said the city.

The city also said that it has communicated and engaged with businesses and the community through regular meetings since November 2024, and will continue to work with them to "develop solutions to minimize impacts during construction and address their concerns."

Among the upgrades, a 1910-era water main between Eighth Avenue and Seven Avenue on Centre Street will be replaced.

The Calgary Downtown Association, a partner in the revitalization project, noted that it has been working with the city for months to address concerns around the "needed infrastructure project."

In an emailed statement, the association said "Stephen Avenue has needed this type of investment for years," and that it has been strongly advocating on expediting the construction schedule and timing to reduce impact on its members.

Businesses worried about taking financial hit

The threat of legal action comes as a group of Marda Loop businesses has sued the City of Calgary for $75 million over an ongoing, two-year construction project that has negatively impacted the plaintiffs financially, according to a statement of claim.

Deere said he's worried about Stephen Avenue businesses suffering the same fate as Marda Loop's, calling the southwest community's situation "a microcosm" of what could happen to the downtown street with construction impeding traffic flowing into the area.

Leslie Echino is the owner of Annabelle's Kitchen which has two locations: one on Stephen Avenue and the other in Marda Loop. She said she's seen businesses financially strained in Marda Loop and doesn't want to see the same happen downtown.

"It hurts my heart, it hurts my business, it hurts our staff, it hurts the entire community," she said. "I cannot live with the building and construction in front of my building for 15 months."

The city said "construction is intentionally scheduled to begin after Stampede 2025 and targets substantial completion before Stampede 2026," helping to avoid impacts on businesses during Stampedes. It added that signage in the area will ensure people can still access businesses and storefronts.

Safety concerns

Deere said other issues in the area, such as social unrest, crime and homelessness, should also be addressed first.

"It makes no sense to be doing these big developments right now and making something beautiful when we do not have the systems to support it moving forward," Deere said.

With the street being torn up and nine-foot hoarding expected along the street and near his restaurant, Deere said he's worried about more criminal activity occurring as parts of the open street are restricted to corridors.

The city's project webpage says "three-metre-wide pedestrian access paths will be maintained on the north or south side of the street" with mid-block crossings to allow for movement along the street.

"What's gonna happen over time is Stephen Ave. will become a ghost town. That's when crime moves in," Deere said.

A potential recovery year for businesses

Baden said her restaurant is "finally" seeing business recover after the COVID-19 pandemic, which is why construction happening right now "is like a hammer coming down."

Deere said he believed this year could deliver a boost the industry's recovery "with the amount of Canadians staycationing and traveling across Canada.

"We are one of the hotspot destinations and we also realize that there are many Americans that are going to be coming up here because of the discount of the dollar," he said.

"So this could be our best August ever and we need to be open to be able to to achieve that."